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The Almighty Buck Technology News Politics

How "Big Ideas" Are Actually Hurting International Development 92

schnell writes: The New Republic is running a fascinating article that analyzes the changing state of foreign development. Tech entrepreneurs and celebrities are increasingly realizing the inefficiencies of the old charitable NGO-based model of foreign aid, and shifting their support to "disruptive" new ideas that have been demonstrated in small experiments to deliver disproportionately beneficial results. But multiple studies now show that "game changing" ideas that prove revolutionary in limited studies fail to prove effective at scale, and are limited by a simple and disappointing fact: no matter how revolutionary your idea is, whether it works or not is wholly dependent on 1.) the local culture and circumstances, and 2.) who is implementing the program.
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How "Big Ideas" Are Actually Hurting International Development

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  • The only thing that foreign aid has helped accomplish so far (the last FORTY years!), is prop up dictators and help them balance their budgets, so as to keep their weapons-buying programs out of harms way. This article sounds like somebody has a cushy job to lose.

    • Yeah. Especially in the U.S. "foreign aid" == military subsidies

    • And that's just considering the US (USAid, MIC subsidies funneled through Israel & Egypt, etc.).

  • people got them into their current situation and people are keeping them there, it's that simple. it's a global problem, it's just worse in some areas.

  • by retroworks ( 652802 ) on Sunday November 23, 2014 @07:31AM (#48443365) Homepage Journal

    What works is the "tinkerer's blessing" (opposite of the curse of natural resources). Chronicled in Yuzo Takahashi's history of Japanese radio technicians https://muse.jhu.edu/login?aut... [jhu.edu] , development is best done through normal trade with geeks and technicians. South Korea, Singapore, Guangdong, Taiwan, etc. all developed from refurbishing and reverse engineering used technology. Benjamin Franklin was engaged in buying used surplus printing machines and textile machines for reassembly in the USA, Technicians, nerds, repairers, fixers tend to be smart quiet truthful people, and when economies grow from talented knock off (Shanzai in Chinese) to outsourced contracting to ODM, you wind up with Terry Gou, Simon Lin, and Lee Byung-chul.

    What has tragically happened in Africa and India is that do gooders and celebrities like Annie Leonard have found a recipe of white guilt and created a bogus "e-waste" crisis which puts African geeks and nerds in prison. FreeHurricaneBenson. Forums like Slashdot, where repair and tinkerers gather, have been important places to assess the ewaste hoax. http://retroworks.blogspot.com... [blogspot.com] I lived in Africa in the mid 1980s and have been finding win-win trade with display devices for almost two decades, and see Africans getting increasingly furious at the people making up fake stats, taking pictures of kids at dumps, and making money without sharing. Search Heather Agyepong's "The Gaze on Agbogbloshie", or read Emmanuel Nyaletey's "My Reaction to The E-Waste Tragedy" http://www.isri.org/news-publi... [isri.org] Emmanuel is an electronics repair technician who grew up a few blocks from Agbogbloshie, Ghana, the scrapyard in a city of 4 million people (Ghana). currently on scholarship for coding at Georgia Tech. I'll put my money on geeks like Emmanuel and the free market over anti-trade rantists and celebrity AID show Bob Geldoffs all day long.

  • by lkcl ( 517947 ) <lkcl@lkcl.net> on Sunday November 23, 2014 @08:18AM (#48443465) Homepage

    this is really really important: anyone wishing to make a difference in the world really REALLY needs to read the book written by Professor Yunus, the joint winner of the 2006 Nobel Peace Price, "Creating a World Without Poverty".

    in his book, Professor Yunus describes how he naively studied Economics because he believed that he would be able to change his country's financial situation through studying first world economies. after graduation he set out just after one of the worst natural disasters his country had experienced and realised how completely pointless his studies had been. however he did not give up, and set out to work out what the problem actually was.

    he learned that the poor are first and foremost incredibly resourceful... mostly because they have to. he also learned that many of them are, because there are no enforceable usury laws, permanently kept in debt to money-lenders. this shocked him so badly that once he freed an entire village from debt just from the small change in his wallet: something like $USD 15 was all it took to pay off a decade of usury.

    what he discovered is that the gratitude of these people when freed from their former situation is immeasurable. the Grameen Bank doesn't have lawyers or debt collectors. the people that they lend money to are so GRATEFUL that they work non-stop to turn their lives around and pay off their loan. in fact, the repayment success rate is around NINETY EIGHT percent. it's so high that the *GRAMEEN BANK* considers it to be THEIR FAULT if one of their customers is ever in default. by contrast in the western world the default rate is 88%. i'll repeat that again in case it's not clear: only TWELVE PERCENT of creditors in the western world pay their debts on time, every time, and in full.

    but the main reason why anyone wishing to help the emerging markets and the third world should read his book is because he patiently, with all the knowledge from his economics background, outlines why NGOs, Charity and the "Corporate Social Responsibility" clauses of standard profit-maximising Capitalist Corporations are all worse than doomed but are guaranteed to be ineffective at best and invariably seriously damaging and counter-productive.

    right at the start of his book he outlines a surprising offer by Danone to work with him (follow his advice) to actually be effective. it was Professor Yunus's first experience of having been "under the microscope" of people with both big resources and heart. in other words the team at Danone were huge fans of what Yunus was trying to achieve: when he explained to them the financial structure that was needed, they listened, and they did it. they did not go in with a charity, or with donations: they set up a "non-loss, non-dividend" business, selling *locally-produced* yoghurt that happened to have the nutritients that the local population happened (by a not-coincidence) to be chronically deficient in.

    the yohurt was sold not at a loss but at an affordable financially sustainable price because the focus was on remaining *stable*, not on exploitation through maximisation of profits: the focus was on allowing people to feel proud of what they achieved, and to take responsibility for their own wealth. they were EMPOWERED through the enormous generous resources of Danone's, but it was a successful venture because they LISTENED to what Professor Yunus had to say.

    • this shocked him so badly that once he freed an entire village from debt just from the small change in his wallet: something like $USD 15 was all it took to pay off a decade of usury.

      How long did it take before they were back in debt?

  • we have to blame the business people here

    the problem is that the people with money don't know the difference between a *good* tech innovation and *bullshit* marketing gussied up as tech innovation

    the problem is ignorance of the decision makers, not our ideas

    there are plenty of good ideas to be had floating in the ether...

  • People are always looking for quick fixes and silver bullets, preferably centrally administered and implemented in a few years. They don't work for international development, but they also don't work in national politics.

    The best way of achieving prosperity and development is to ensure that people are free to make their own choices, not to dump government aid or programs on them.

  • Because a "big idea" that fails to provide widespread beneficial results is, by definition, not game changing*. It sounds like your PR people just got a bit ahead of themselves while trying to raise venture capital.

    *On the other hand, a few people trying to lash together a couple of DEC PDPs with no grandiose thoughts of being game changing seem to have done just that.

  • Hi schnell [slashdot.org] - this was a good find. Thanks

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